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California Faces $12B Deficit: Cuts vs. Investments Debate

6/10/2025

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Summary

Story summary

In a bid to tackle a staggering $12 billion deficit, California Governor Gavin Newsom has suggested deep cuts to Medi-Cal and social programs. However, legislative leaders are pushing back, advocating for a budget that focuses on borrowing and minimal reductions. They’ve notably preserved health coverage for undocumented immigrants while boosting investments in education and affordable housing.

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Story summary

In a bid to tackle a staggering $12 billion deficit, California Governor Gavin Newsom has suggested deep cuts to Medi-Cal and social programs. However, legislative leaders are pushing back, advocating for a budget that focuses on borrowing and minimal reductions. They’ve notably preserved health coverage for undocumented immigrants while boosting investments in education and affordable housing.